Invest in Burma Tax Free

I saw this a few days ago and it looked quite interesting.

In an effort to boost their economic ties with Western companies, Myanmar (formerly Burma), has passed a law for an eight-year tax exemption for foreign investors.

The previous Myanmar investment law was quite restrictive, but the government searched for ways to attract international investors.

One of their main aims was to make their country more economically “attractive than our neighbours.”

The country’s immediate goal was to see massive investment in the tourist industry and apparently the hotels are already struggling to cope with demand.

So could Myanmar be “the next Cayman Islands”?

Might be worth keeping an eye on.

One Comment

  • Pramesh says:

    The thing is you can’t just have a tax free country you got to have other incentives to add investments. In the caymans they had a huge tourist industry which most of the locals participated in. Their investment business was even bigger which Caymans being the 5th biggest financial centre in the world.

    How did they it was provide a platform for all the investement managers, lawyers and accountants necessary to support their hedge funds. And the government never got to hectic with their legistlation and red tape which made business easier.

    The ‘no tax’ on the companies did help a massive amount, but their was other costs to doing business like work permits for your skilled expets and licenses to do business. For an accountant it was $10,000 per year and for having your company domiciled in the caymans you had to pay $120,000 for the business licence.

    Ireland also had low tax laws which was like 15% one of the lowest in the EU, which attracted a lot of american companies like microsoft and american banks to that region. They have still stayed there even though Ireland are in so much problems at the moment. The real shame is that the government spent more money then they brought in in terms of tax revenue and now they are in real trouble.

    Its the same with the Cayman Islands where they have a massive deficent and they had to be bailed out by the UK.

    So in conclusion, I’m all in favour of low tax rate regions, they play an important part to attracting investment, however you got to provide more then low taxes, easy of business needs to be a factor as well. The other thing is that if the country is not getting in massive tax revenues they will have to find another way to fund all the schools, housing projects etc.

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